The London Stock Exchange reiterated its opposition to a hostile bid from Nasdaq Stock Market on Monday, noting that valuations of trading exchanges had risen since its U.S. rival launched its bid.
The London Stock Exchange (LSE) said it had sent a letter to shareholders which "draws specific attention to the fact that the December 2006 trading P/E (price/earnings) multiples for the major listed exchanges have risen by, on average, 10.5%. since Nasdaq announced its offer on Nov. 20."
"The board continues to recommend strongly that exchange shareholders reject Nasdaq's wholly inadequate offer and take no action in respect of their shareholdings," LSE chairman Chris Gibson-Smith said in a statement.